Green Financing
HKEX Part D Para 33, 34
Green Financing
HKEX Part D Para 33, 34
Swire Properties integrates sustainability considerations into our financing mechanisms. By obtaining green financing through green bonds, green loans and sustainability-linked loans, we support the transition to a low-carbon, more resource-efficient and sustainable economy, and reaffirm our commitments to sustainable development and to designing and developing sustainable projects that improve the wellbeing of building occupants and local communities.
We have targeted achieving a minimum of 50% of bond and loan facilities from green financing by 2025 and 80% by 2030.
The issuance of our first green bond in January 2018 symbolised Swire Properties’ profound commitment to SD. The bond raised USD500 million at a coupon rate of 3.5% and is due in 2028. In 2020, our commitment deepened further, with the issuance of four more green bonds totalling HKD1,934 million.
In July 2023, Swire Properties became the first Hong Kong corporation to issue an RMB-denominated public green bond, known as a “green dim sum bond”. The transaction raised RMB3.2 billion, making it the largest-ever corporate green dim sum bond issuance in Hong Kong at the time. In 2024, we issued another dim sum bond for RMB3.5 billion, our largest offshore RMB bond issuance to date.
As of 31st December 2025, approximately 70% of our financing was derived from green bonds and sustainability-linked loans. During the year, we issued green bonds totalling approximately HKD4.5 billion and arranged sustainability-linked loans of approximately HKD5.1 billion. As of the end of 2025, 100% of the net proceeds from these green bonds had been fully utilised. The proceeds from our green financing, including our green loans, have been allocated to the following green projects:
Allocation of Green Bonds and Green Loan Proceeds
(As at 31st December 2025)
Our 2025 Green Finance Report was released in March 2026, providing information on the projects funded by our green bonds and green loans and the estimated quantitative environmental impact, including energy and water saving, renewable energy generation, wastewater management practices, and other impacts.
Internal Carbon Pricing Updates
Internal Carbon Pricing Updates
In 2023, Swire Properties began piloting the use of internal carbon pricing (“ICP”) to determine the potential impacts of carbon emissions on our investments, quantify carbon risks to our business operations and better reallocate capital towards low-carbon and energy efficient investment and opportunities. ICP also facilitates engagement across departments and teams, allowing them to integrate carbon reduction strategies with business objectives and achieve our common decarbonisation goal.
The ICP Committee, consisting of representatives from the FMSD and Finance Department, jointly administers the decarbonisation funds generated by ICP initiatives, which are used to finance innovative solutions to help us achieve our science-based targets. The ESGSC oversees the overall mechanism and project approval to ensure that funds are effectively channelled towards meaningful and impactful projects.
The ICP mechanism is a hybrid model comprising a carbon fee and shadow pricing. The internal carbon fee that has been set is based on the units of emissions generated by Scope 1 and 2 operational emissions and on the Scope 3 business travel emissions generated in the previous financial year. Proceeds collected through the fee are set aside in a decarbonisation fund to support additional decarbonisation projects. The carbon fee was adjusted to USD50/tCO2-e in 2025 to bring the fee closer in line with prices forecast by the Asian Development Bank.
The shadow pricing mechanism provides additional information about the impact of emissions associated with our businesses’ capital expenditures and thus aligns the investment decision making process with our carbon reduction goals. It also reveals hidden risks and opportunities present throughout our operations and supports strategic decision making related to future capital investments. The shadow pricing mechanism will be applied to planned projects that exceed a threshold value or projects that meet selected criteria. The shadow carbon price was adjusted to USD110/tCO2-e in 2025 to bring the fee into alignment with projections made by the High-Level Commission on Carbon Pricing.
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